Collecting and Collecting and Analyzing Marketing Analyzing Marketing InformationInformation

Dr. Ananda Sabil HusseinDr. Ananda Sabil Hussein

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Issues to be ConsideredIssues to be Consideredin a Situation Analysisin a Situation Analysis

4-2Exhibit 4.1

Conducting aConducting aSituation Analysis Situation Analysis (1 of 2)(1 of 2)

Analysis Alone is Not the SolutionAnalysis Alone is Not the Solution

Data and Information are Not the SameData and Information are Not the Same DataData

A collection of numbers or facts that have the potential to A collection of numbers or facts that have the potential to informinform

InformationInformation Data that has been transformed or combined with other Data that has been transformed or combined with other

data in a manner that makes it useful to decision makers data in a manner that makes it useful to decision makers

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Conducting aConducting aSituation Analysis Situation Analysis (2 of 2)(2 of 2)

The Benefits of Analysis Must Outweigh the CostsThe Benefits of Analysis Must Outweigh the Costs

Conducting a Situation Analysis is a Challenging Conducting a Situation Analysis is a Challenging ExerciseExercise

One of the most difficult parts of the marketing planOne of the most difficult parts of the marketing plan Should provide a complete picture of three key Should provide a complete picture of three key

environments:environments:

1.1. InternalInternal

2.2. CustomerCustomer

3.3. ExternalExternal

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The Interconnectedness of the Internal, The Interconnectedness of the Internal, Customer, and External EnvironmentsCustomer, and External Environments

4-5Exhibit 4.2

Discussion QuestionDiscussion QuestionDiscussion QuestionDiscussion Question

Of the three major environments in a situation Of the three major environments in a situation analysis (internal, customer, external), which do you analysis (internal, customer, external), which do you think is the most important in a general sense? think is the most important in a general sense? Why? What are some situations that would make Why? What are some situations that would make one environment more important than the others?one environment more important than the others?

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The Internal The Internal Environment Environment (1 of 2)(1 of 2)

Review of Current Objectives, Strategy and PerformanceReview of Current Objectives, Strategy and Performance An important input to later stages in the planning processAn important input to later stages in the planning process Poor or declining performance must be the result of:Poor or declining performance must be the result of:

Goals or objectives that are inconsistent Goals or objectives that are inconsistent with the customer or external with the customer or external environmentsenvironments

Flawed marketing strategyFlawed marketing strategy Poor implementationPoor implementation Changes in the customer or external Changes in the customer or external

environments that are beyond the control environments that are beyond the control of the firmof the firm

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The Internal The Internal Environment Environment (2 of 2)(2 of 2)

Availability of ResourcesAvailability of Resources Includes a review of financial, human, and experience Includes a review of financial, human, and experience

resources; as well as resources from key relationshipsresources; as well as resources from key relationships Financial resources tend to get most attentionFinancial resources tend to get most attention Labor shortages are expected to be a major problem in the Labor shortages are expected to be a major problem in the

coming yearscoming years

Organizational Culture and StructureOrganizational Culture and Structure Problems can arise when marketing does not hold a Problems can arise when marketing does not hold a

prominent position in the organizational hierarchyprominent position in the organizational hierarchy Culture and structure are relatively stable but can be Culture and structure are relatively stable but can be

affected by mergersaffected by mergers

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The Customer The Customer EnvironmentEnvironment

Who are our Current and Potential Customers?Who are our Current and Potential Customers?

What do our Customers do with our Products?What do our Customers do with our Products?

Where do Customers Purchase our Products?Where do Customers Purchase our Products?

When do Customers Purchase our Products?When do Customers Purchase our Products?

Why (and How) do Customers Select our Why (and How) do Customers Select our Products?Products?

Why do Potential Customers not Purchase our Why do Potential Customers not Purchase our Products?Products?

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Discussion QuestionDiscussion QuestionDiscussion QuestionDiscussion Question

Understanding the motivations of a firmUnderstanding the motivations of a firm’’s s noncustomers is often just as important as noncustomers is often just as important as understanding its customers. Look again at the understanding its customers. Look again at the reasons why an individual would not purchase a reasons why an individual would not purchase a firmfirm’’s products. How can a firm reach out to s products. How can a firm reach out to noncustomers and successfully convert them to noncustomers and successfully convert them to customers?customers?

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The External The External Environment Environment (1 of 2)(1 of 2)

CompetitionCompetitionBrand competitorsBrand competitorsProduct competitorsProduct competitorsGeneric competitorsGeneric competitorsTotal budget competitorsTotal budget competitors

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Major Types of CompetitionMajor Types of Competition

4-12Exhibit 4.6

Stages of Competitive Stages of Competitive AnalysisAnalysis

1.1. IdentificationIdentification Identify all current and potential competitorsIdentify all current and potential competitors

2.2. CharacteristicsCharacteristics Assess each key competitorAssess each key competitor’’s characteristicss characteristics

3.3. AssessmentAssessment Assess each key competitorAssess each key competitor’’s strengths and s strengths and

weaknessesweaknesses

4.4. CapabilitiesCapabilities Focus the analysis on each key competitorFocus the analysis on each key competitor’’s marketing s marketing

capabilitiescapabilities

5.5. ResponseResponse Estimate each key competitorEstimate each key competitor’’s most likely strategies s most likely strategies

and responses under different environmental situationsand responses under different environmental situations4-13

The External The External Environment Environment (2 of 2)(2 of 2)

Economic Growth and StabilityEconomic Growth and Stability

Political TrendsPolitical Trends

Legal and Regulatory IssuesLegal and Regulatory Issues

Technological AdvancementsTechnological Advancements

Sociocultural TrendsSociocultural TrendsDemographic TrendsDemographic TrendsLifestyle TrendsLifestyle TrendsTrends in Cultural ValuesTrends in Cultural Values

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Trends in theTrends in theSociocultural Environment Sociocultural Environment (1 of 2)(1 of 2)

Example Demographic TrendsExample Demographic TrendsAging of the American populationAging of the American populationDecline in the teen population Decline in the teen population Population growth in the Sun Belt statesPopulation growth in the Sun Belt states

Example Lifestyle TrendsExample Lifestyle TrendsClothing has become more casual, especially at Clothing has become more casual, especially at

workworkClothing has become more revealing, especially Clothing has become more revealing, especially

for womenfor womenGrowing participation in body modification (e.g., Growing participation in body modification (e.g.,

tattoos, piercings)tattoos, piercings)4-15From Exhibit 4.7

Trends in theTrends in theSociocultural Environment Sociocultural Environment (2 of 2)(2 of 2)

Trends in Cultural ValuesTrends in Cultural ValuesLess focus on Less focus on ““me-orientedme-oriented”” values valuesMore value-oriented consumption (good quality, More value-oriented consumption (good quality,

good price)good price) Importance in maintaining close, personal Importance in maintaining close, personal

relationshipsrelationships

4-16From Exhibit 4.7

Collecting Collecting EnvironmentalEnvironmental

Data and Information Data and Information (1 of (1 of

2)2)Secondary Information SourcesSecondary Information Sources Internal Data SourcesInternal Data SourcesGovernment SourcesGovernment SourcesPeriodicals/Book SourcesPeriodicals/Book SourcesCommercial (Fee-Based) SourcesCommercial (Fee-Based) Sources

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Collecting Collecting EnvironmentalEnvironmental

Data and Information Data and Information (2 of (2 of

2)2)Primary Data CollectionPrimary Data CollectionDirect ObservationDirect ObservationFocus GroupsFocus GroupsSurveysSurveysExperimentsExperiments

Overcoming Problems in Data CollectionOvercoming Problems in Data Collection

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Discussion QuestionDiscussion QuestionDiscussion QuestionDiscussion Question

Do you think the Internet has made it easier or more Do you think the Internet has made it easier or more difficult to collect marketing data and information? difficult to collect marketing data and information? Why? How might the major data collection issues of Why? How might the major data collection issues of today compare to the issues that occurred in the today compare to the issues that occurred in the pre-Internet era?pre-Internet era?

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